South Korea Urges US Pennsylvania to Grant Tariff Exemption on Its Shipbuilding Materials

MaticHoleFiller · 2026-03-18T19:21:39+00:00

South Korea's Ministry of Industry, Trade and Resources has requested the U.S. state of Pennsylvania to assess support measures, including tariff exemptions for shipbuilding materials, aimed at expanding shipbuilding cooperation with the United States. South Korea has committed to investing $150 billion to enhance the production capacity of the Philadelphia shipyard and has called for streamlined administrative procedures and infrastructure establishment to facilitate related development.

MaticHoleFiller

2026-03-18 19:21:39

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According to South Korean officials, the Ministry of Trade, Industry, and Energy requested the state of Pennsylvania in the United States on Wednesday to evaluate measures supporting South Korea’s shipbuilding activities in the state, including tariff exemptions on shipbuilding materials.

Park Dong-il, Director of Industrial Policy at the Ministry of Trade, Industry, and Energy, made this appeal during a meeting in Seoul with Pennsylvania Secretary of Economic Development Rick Siger.

Pennsylvania is home to the Philadelphia shipyard, which was acquired by South Korean shipbuilding company Hanwha Ocean in 2024.

The Wednesday meeting coincided with efforts by South Korea and the U.S. to expand bilateral cooperation in shipbuilding under a trade agreement finalized last year.

Under the agreement, Seoul committed to investing $150 billion in the “Make American Shipbuilding Great Again” (MASGA) initiative in exchange for tariff reductions.

Park Dong-il told Siger that South Korean shipbuilders are evaluating several business projects aligned with the MASGA plan, including capacity expansion, talent development, and supply chain strengthening.

For example, Hanwha Ocean plans to significantly increase its annual capacity at the Philadelphia shipyard from the current 1.5 ships to 10 ships.

He stated that to help these efforts succeed, administrative procedures for facility expansion must be streamlined, and necessary infrastructure should be established. He also called for designating the Philadelphia area as a Marine Prosperity Zone (MPZ) under the Marine Action Plan announced in Washington in February.

Once designated as an MPZ, companies in the area can enjoy tax incentives and other benefits to invest in shipbuilding and related industry infrastructure.

The Ministry of Trade, Industry, and Energy added that Park Dong-il also requested an assessment of the possibility of tariff exemptions on shipbuilding materials such as steel and components exported from Korea to the U.S.

The ministry said it will continue close consultations with the U.S. to create a favorable environment for Korean companies to invest in the U.S.

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